VMware, which reported revenue growth of 22 percent for 2012 compared to 2011, raking in around $4.61 billion, said that it would be handing around seven percent of its 13,800 staff their pink slips as part of a restructuring effort.
The announcement was driven by a slowdown in its 2013 earnings predictions,
However, it said it plans to hire in other areas.
Speaking with analysts, VMware chief exec Pat Gelsinger said a lack of government spending, plus increasing competition from the likes of Microsoft, meant that the company had to focus on specific products and geography.
This means taking away a focus on areas such as its online presentation software, SlideRocket and looking more at software-defined data centres and hybrid cloud services. Translated, this means VMware will slash 900 jobs in areas that are not profitable, where it hopes to save roughly $20 million for the first quarter of 2013.
Gelsinger did say that 1,000 jobs should be created by the end of the year as the company keeps up with competitors in its new focus areas. He said the company will shovel talent into the new roles, which support “growth opportunities” as well looking for new recruits in these areas.
The announcement comes after security software firm Symantec admitted it would be culling management jobs to save cash.